Though I'm currently looking at investing via Folio on the secondary market.

Yeah I looked at that briefly and it might be a faster investment vehicle, but a lot of the valuations were goofy too. While I think the secondary market is a good thing, not sure I want to spend that much time with this particular play investment .

Re: LendingClub!

I have an app in process right now. 15k for 36 months. 684 FIco. Somehow registered as an A5 so 8.9% will be interested to see if it's approved. Seems like the funding on mine is slow going though. Only at 20% after 3 days. Some people get funded fasted. I have sent w2 pay stubs and verified bank and phone. We'll see what happens.

Re: LendingClub!

I invest over at LendingClub and have been pretty happy with the results. Here's some insight on why it may take up to the full 14 days to fund your loan.

- People want to make better money on their investments, so the lower grade loans promise better returns in exchance for higher risk.

- Loans graded in the A category often take more than a week to fully fund, but in my experience I never see any loans that go beyond 10 days of funding unless there is something really odd about the loan. I am currently invested in 149 loans and have no As in my portfolio simply because the returns are not high enough.

- Many people shoot themselves in the foot from day one. People applying should keep in mind that humans are reading and making a decision whether or not to invest in your loan. So if you put in a smart-assed title (I've seen "My W33D BiZZZ") or obviously lie about the puprpose, people won't risk their hard earned money on you.

- Be honest and don't try to make yourself look better by playing with the numbers. If self-report that you make $30,000/month, have a 90% revolving utilization, but only 3% Debt-to-income, you simply don't add up in my book and you'll never get a penny. Also, when they verify your info, your loan will get cancelled if you can't produce the documentation to back i tup.

- Everyone has a credit history, so be human. I MAY invest in your loan if you have aged delinquencies or public records, but not without explanation. Save everyone the hastle of asking you and just be up front and human. Don't make excuses, just state what the issues were and what you've done to prevent it from happening again. Some of those loans fund in minutes.

Re: LendingClub!

I invest over at LendingClub and have been pretty happy with the results. Here's some insight on why it may take up to the full 14 days to fund your loan.

- People want to make better money on their investments, so the lower grade loans promise better returns in exchance for higher risk.

- Loans graded in the A category often take more than a week to fully fund, but in my experience I never see any loans that go beyond 10 days of funding unless there is something really odd about the loan. I am currently invested in 149 loans and have no As in my portfolio simply because the returns are not high enough.

- Many people shoot themselves in the foot from day one. People applying should keep in mind that humans are reading and making a decision whether or not to invest in your loan. So if you put in a smart-assed title (I've seen "My W33D BiZZZ") or obviously lie about the puprpose, people won't risk their hard earned money on you.

- Be honest and don't try to make yourself look better by playing with the numbers. If self-report that you make $30,000/month, have a 90% revolving utilization, but only 3% Debt-to-income, you simply don't add up in my book and you'll never get a penny. Also, when they verify your info, your loan will get cancelled if you can't produce the documentation to back i tup.

- Everyone has a credit history, so be human. I MAY invest in your loan if you have aged delinquencies or public records, but not without explanation. Save everyone the hastle of asking you and just be up front and human. Don't make excuses, just state what the issues were and what you've done to prevent it from happening again. Some of those loans fund in minutes.

Let us know how it works out for you!

So when you say A's get funded more slowly what grades get funded the fastest? Does time of month matter?

Re: LendingClub!

Any Low C (C4 or C5) grade or lower with a score > 680, absolutely no lates or collections on record, income of at least $5,000/month, less thatn 15% Debt-to-Income and monthly payment less than 10% of monthly gross income go instantly. Institutional investors snap them out before 1/2 of us get the chance to review and invest.

Other factors that help:

Employment greater than 1 year

Loans for Debt Consolidation vs "Other" or "Business"

Time of first credit > 8 years

Time of month makes no difference. There are always people willing to invest!

Re: LendingClub!

That is a pretty good rate for an unsecured term loan. The 3 banks I have worked at wouldn't look twice at someone with a FICO under 680 for unsecured. If your score is better you can definitely receive a better rate, but for those that want a fixed payment peer to peer lending is a good resource. Banks don't tend to look too much into your CR for small unsecured loans, especially larger banks. Typically it is automated underwriting like a CC, it does help if you are a deposit customer though. A large bank I worked at for 5 years would offer unsecure term loans and lines of credit (floating rate) up to $25k with rates starting around 8% if you were in the lowest risk level. Not bad for unsecured. There would be promotions where the margin over prime would be reduced so starting rate at the time was 7.25% - about 2 years ago.

On a side note I have been an investor with Lending Club for a little over a year now and I love it. I only go for the high risk debt consolidation loans ($25 max per) and have not been burned yet. The community bank I currently work at is looking to offer Lending Club loans in branch and possibly be an investor themselves. Helps our customers and takes the liability away from us.

Re: LendingClub!

Just a note that LC hates short credit history. Since it is a SP I was curious to see what rate I would get, no actual intention of getting a loan as I don't need it. But I am an investor on LC and I was curious to see how I myself would rank.

Answer -- I don't. Denied. They SP'd TU and then declined my application on the grounds that my credit history is too short.

My credit history is short -- my oldest account is 14 months and my average account age is 10 months.

So LC doesn't like that. TU score pulled was 732. No derogatories whatsoever, just a short history.

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